Steps to Dissolve an LLC in Delaware
To dissolve an LLC in Delaware, you first fill out a certificate of cancellation with the Delaware Department of State. Usually, the LLC agreement requires members to vote to dissolve the company. A majority must vote in favor.
Initial Process for Dissolving LLCs in Delaware
Cancellation is Delaware’s term for closing an LLC. First pay creditors, cease operations, and provide funds to cover foreseeable creditors for 10 years. Then file a Certificate of Cancellation to formally close the company.
Key Steps in Shutting Down a Delaware LLC
- Members vote to dissolve the LLC.
- Cancel business licenses and permits.
- File the Certificate of Cancellation.
Difference Between Dissolution and Cancellation in Delaware
To dissolve an LLC in Delaware, you first fill out a certificate of cancellation with the Delaware Department of State. Usually, the LLC agreement requires members to vote to dissolve the company.
Cost of Cancelling a Delaware LLC
The filing fee for the Delaware LLC Certificate of Cancellation is $200. There is no cost associated with the Cover Letter.
Final Notes on Delaware LLC Dissolution
- Hold a Board meeting (unless single-member LLC)
- File Articles of Dissolution
- Notify the IRS
In Summary, to cancel your Delaware LLC, you must contact the Delaware Department of State, Franchise Tax Section, concerning any taxes due when canceling the Delaware LLC, and include a check for any tax payment due with the Certificate of Cancellation and a $200 filing fee.